Andersen, Torben M. - In: CESifo economic studies : CESifo, a joint initiative of … 51 (2005) 4, pp. 511-547
This paper discusses the need and scope for an active fiscal stabilization policy. It is argued that the effectiveness of fiscal policy as a short run stabilizer does not depend on the long run multipliers of (balanced budget) fiscal policies. To the extent that activity can be affected by...
